Climate Investor One has reached third close at USD 535 million. This innovative blended finance facility provides funding for renewable energy projects in the wind, solar and run-of-river hydro sectors in developing countries .

Climate Investor One seeks to deliver in excess of 1,100 (MW) of new additional capacity, producing 3,200 (GWh/year) of affordable clean electricity to approximately 7 million people. In addition, the facility will generate more than 10,000 jobs and avoid annually approximately 1.2 million tons of CO2, equating to removing approximately 257,000 passenger cars off the road.

Climate Investor One comprises three separate, but operationally interlinked funds: the Development Fund, the Construction Equity Fund and the Refinancing Fund, each tailored to finance a stage in the project’s lifecycle: development, construction and operations. The facility is managed by Climate Fund Managers and was launched in partnership with FMO and Sanlam Infraworks of South Africa.

The facility originally closed at USD 460 million in 2017 but gained momentum by attracting three new investors. The IMAS Foundation and the Swedish Development Finance Institution Swedfund have invested in the Construction Equity Fund, while the joint development finance institution Nordic Development Fund is participating in the Development Fund.

‘We are very proud to welcome three additional, well-established and recognised investors from Northern Europe into the Climate Investor One group of early-adopter, forward thinking institutions. With a successful Third Close the facility has established itself as one of the world’s largest renewable energy development and financing initiatives for developing country investments. The addition of our three new partners underpins the interest for blended finance initiatives and climate-responsible investment opportunities in emerging markets. We expect to keep the momentum growing, ’ says Georges Beukering, Director of Climate Fund Managers and Head of Capital Raising & Business.

‘Access to clean, reliable energy is a prerequisite for poverty reduction, which is why investments in energy are prioritised for Swedfund. Climate Investor One is also an interesting example of how financing from private investors can be channelled to developing countries which is necessary if we are to reach the Sustainable Development Goals,’ says Maria Håkansson, CEO of Swedfund.

‘The Nordic Development Fund (NDF) is very pleased to be able to contribute to the Development Fund of Climate Investor One as one of the new partners. Our funding sweet spot is at the early stage of project development. Despite a higher risk, investments in the early stage are important and it makes sense for a partner like NDF to participate in creating the most productive environment to support the development of transformational projects. The structure of CIO represents an innovative blended finance platform that will enable projects to access support over a longer time horizon as the financing needs of the projects evolve,’ says Leena Klossner, Vice President and Deputy Managing Director of the Nordic Development Fund.